The information ratio is important in evaluating mutual funds because it measures how well a fund performs compared to a benchmark, considering the risk taken. It shows if a fund manager is delivering consistent returns above the benchmark without taking ex...
Blog by PriyaSahu
The Keltner Channel is important in trading because it helps identify trends, potential reversals, and overbought or oversold conditions using price and volatility. It shows a channel around the price, based on average price and volatility, helping traders ...
The Key Information Memorandum (KIM) is important in mutual funds because it provides clear and essential details about the fund to help investors make informed decisions. It explains the fund’s objectives, risks, costs, and how it works in simple language....
The Money Flow Index (MFI) is important in volume analysis because it shows the strength of money moving in and out of a stock using both price and volume data. It helps traders understand if buying or selling pressure is strong and if a price trend might c...
The MACD indicator is important because it helps traders identify the strength, direction, and changes in a stock’s price trend. It shows when to buy or sell by comparing two moving averages and highlighting momentum shifts. This helps traders catch g...
The Parabolic SAR indicator is important because it helps traders identify the direction of a stock’s price trend and possible reversal points. It shows whether to buy or sell by placing dots above or below the price. This makes it easier to decide en...
The trade balance is important in forex markets because it shows the difference between a country’s exports and imports. A positive trade balance means more exports than imports, which strengthens the country’s currency. A negative trade balance means...
The VIX index is important in stock market predictions because it measures market volatility or fear. A high VIX means investors expect big price swings and uncertainty, while a low VIX means calm and confidence. Traders use the VIX to gauge market ri...
Time and sales data is important in trading because it shows real-time information about every trade that happens in the market. It helps traders see the exact price, volume, and time of each transaction. This data gives a clear picture of market acti...
Time decay is very important in options trading because it reduces the value of options as time passes. The closer an option gets to its expiry date, the faster it loses value if the stock price does not move in the expected direction. This is especia...
Tokenomics is very important in crypto investing because it helps you understand how a cryptocurrency works, how valuable it can become, and if it’s worth investing in. It explains how tokens are created, used, and distributed. By studying tokenomics,...
Total return is very important when evaluating stock investments because it shows the full picture of your profit. It includes both capital gains (price increase) and income like dividends. This helps investors understand the real performance of a sto...
Tracking analysts' upgrades and downgrades is important because it gives investors useful signals about a stock's future performance. When analysts upgrade a stock, it means they believe the stock will go up. When they downgrade it, they expect it to fall. ...
Tracking earnings growth is important because it shows how well a company is increasing its profits over time. Consistent earnings growth usually means the company is healthy and can give good returns to investors in the future. Investors watch earni...
Tracking earnings growth is important because it shows how well a company is increasing its profits over time. Consistent earnings growth indicates a healthy, expanding business which can lead to higher stock prices. Investors use earnings growth to j...
Tracking error is important in index mutual funds because it shows how closely the fund follows its benchmark index. A low tracking error means the fund’s returns are very similar to the index returns. High tracking error means the fund’s performance ...
Tracking insider trading activity is important before investing because it shows what company insiders like executives and directors are doing with their own shares. If insiders are buying shares, it usually means they believe the stock will perform well. ...
Tracking international indices is important for global diversification because it helps investors understand global market trends and reduce risk. By investing in markets outside India, you can spread your investments and protect your portfolio from local m...
Trade review and self-assessment are very important in trading because they help you learn from your past trades. It shows what you did right and where you made mistakes. This improves your strategy and builds better habits. By reviewing your trades r...
A trading checklist is very important because it helps traders follow a fixed plan and avoid emotional decisions. It keeps your trading disciplined, focused, and consistent. With a checklist, you are less likely to make mistakes, overtrade, or ignore ...
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